Project Accounting: What is it and Does Your Company Need It

Project accounting is a type of managerial accounting. It is a system that helps businesses track, analyze, and report financial results and implications. By using project accounting, companies can ensure that they are making the most efficient use of their resources and that all aspects of each project are accounted for. In this blog post, we will discuss what project accounting is and how it can benefit businesses. Let's get started!

Which Type of Businesses use Project Accounting

While project accounting was traditionally used for large construction, engineering, and government projects, it has now expanded into several other sectors including IT, non-profit organizations, and marketing. Project accounting is a specialized form of accounting that keeps track of the financial progress of projects.

What Do Project Accountants Do?

1.Monitor the progress of projects

2. Look into variances

3. Approve outgoing inclusive of expenses.

4. Ensuring that project billings are issued to clients and payments collected.

Could Your Business Use a Project Accountant?

Project accounting is most commonly used in businesses that work based on contracts for unique projects, such as construction companies or advertising firms. Project accounting allows businesses to track revenue and expenses by project, in order to better understand the financial outcome of each project and make more informed decisions about where to allocate resources in the future.

Are you a construction company that is looking for a better way to track job costs? Or an agency that wants to improve the transparency of project billing? If so, then project accounting is definitely for you. Contact me today if you need any advice on where you need to go and what you should be doing to cost your projects properly.

As always thank you for taking the time to read my blog.

If you have any questions, please don’t hesitate to reach out.

Sincerely,

Rebecca C Penner CPA, CGA